In What Year Did the Economy Return to Normal Conditions

question 58

Multiple Choice

In what year did the economy return to normal conditions following the Great Depression?

• A) 1933
• B) 1937
• C) 1941
• D) 1945

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Definitions:

Revenue Recognition

The accounting principle that dictates the process and timing of recognizing revenue in the financial statements, typically when it is earned and realizable.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in a particular jurisdiction, notably the United States.

Cookie Jar Reserves

Accounting practices where companies set aside reserves during good financial periods to smooth out earnings in future, less favorable periods.

Estimated Obligations

The predicted liabilities or commitments a company expects to incur in the future, often found in financial planning and budgetary processes.